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The super dollar recovers and rises more than 1% after Fed announcement

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The central bank expects the inflation It will reach the highest level of the last 40 years, around 11%, during the current quarterbut opposed expectations of further rate hikesstating that Britain has already entered a recession which could last two years, longer than during the financial crisis of 2008-2009.

The Federal Reserve went up on Wednesday interest rates at 75 basis pointsup to a target range of between 3.75% and 4%the fourth consecutive increase, while its president, Jerome Powell, dampened hopes of a more dovish turn in monetary policy.

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“It’s very premature to think about pausing” the effort to raise the target federal funds rate, Powell said at a news conference on Wednesday.

Thursday, futures markets estimated that US interest rates will peak at 5.1% at the meeting of June 2023which represents an increase compared to the 4.9% initially forecast in May.

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The dollar indexwhich compares the US currency to six other currencies, grows 1.5% to 112,865, after reaching 113.15 at the opening of the wheel, its highest value since October 21. The euro for your part falls 0.4% against the dollar, to $0.9777.

The pound sinks up to 1.8% against the dollar following the Bank of England statement and falls against the euro before regaining some ground. Sterling was down 1.2% at $1.1810..

In the United States, the performance of Treasury bond The two-year US dollar, more sensitive to changes in interest rate expectations, peaked at more than 15 years, at 4.745%.

Source: Ambito

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